ROS Agro : Presentation for 1Q 2024

MAY 13TH, 2024

ROS AGRO PLC

INVESTORS PRESENTATION

1Q 2024

ROS AGRO PLC AT A GLANCE 2023

2

Diversified Business and Vertical Integration

	Agriculture		Sugar
	Business		Business
		Sugar beet
•	Cultivation and sowing	•	Beet sugar production
	campaign	Fertilizers •	Extract sugar production
•	Cultural treatment and top	•	Production of cereals
	dressing	•	Marketing and sales

• Harvesting and storage

• Sales of products	Grain crops
Oil crops

Leading Market Positions

№1	№1
Consumer margarine	Sunflower oil producer
and mayonnaise	in Russia
producer in Russia	№2
№
2	Industrial fats producer
Sugar producer
in Russia	in Russia
№4	№
	3

Financial Results 2023

277

RUB bn

Net Revenue

56.6

RUB bn

Adj. EBITDA

Oil & Fat

Business

• Production of industrial fats and whey powder
• Oil extraction
• Production of consumer oil&fats and dairy products
• Marketing and sales

Fertilizers

Meal

Meat

Business

• Compound feed production
• Livestock breeding
• Slaughtering and deboning
• Slaughterhouse refuse recycling
• Marketing and sales

Agricultural land	Pork producer in
holder in Russia	Russia
18.4	15	24	23
RUB bn	Russian	Sales	thousand
regions of	countries
CAPEX	assets		Employees

location

20%

Adj. EBITDA margin

48.7

RUB bn

Net profit

TABLE OF CONTENTS
	3

1

Summary Key Indicators (IFRS) 1Q 2024 vs 1Q 2023

4

2

Business Overview by division (IFRS)

8

3

Overview of Debt profile and Cash Flows

15

4

Additional information

18

SECTION 1

SUMMARY KEY INDICATORS (IFRS)

1Q 2024 VS 1Q 2023

KEY EVENTS 1Q 2024
	5

Set up of a project to introduce digital platform in Oil & Fats business

Rusagro-Tekh and Zhirovoy Kombinat initiated customization and implementation of digital platform (MES-systems) of IndaSoft company. Due to digital transition, enterprise management process will be optimized, the risks of failures and production stoppages will be minimized. The pilot sites for the project will be Rusagro-Balakovo elevator and oil extraction plant, as well as Rusagro-Saratov fat plant. All sites are included in Oil & Fats business of the Group, which produces consumer products of popular brands. The launch of the project is planned in 2026.

Permission for pork exports to China

Tambovsky Bekon, which is a part of Rusagro's meat business segment, became one of three Russian facilities that received a permission to supply pork and completed registration in Chinese program of food products exporters CIFER.

A delegation from China's General Administration of Customs visited the meat processing enterprise in Borshchevka, Tambov Region, in December 2023. The delegation participants reviewed the measures to ensure the effectiveness of state control over product quality and assessed the readiness of Rusagro Group Meat business to supply goods

to China.

Launch of pulp export supplies to China

Since the beginning of 2024, 76 containers of granulated beet pulp with a total weight of 1.9 thousand tonnes have been exported from the Otradinsky sugar plant to China. In 2023, the asset successfully passed certification for compliance with the phytosanitary requirements of beet pulp for further export to China.

HIGHLIGHTS 1Q 2024 VS 1Q 2023
	6

+44%		+2%		-4 pp		-68%		-6%*
68.3		7.3		11%		1.7		62.8
RUB bn		RUB bn		adj. EBITDA		RUB bn		RUB bn
Net Revenue		adj. EBITDA		margin		Net profit		Net Debt

+26%		-19%		+38%				-67%
187		58		459		204**		237
ths tn		ths tn		ths tn		ths tn		ths tn
Sugar Sales		Pork products Sales		Oil&Fat and Dairy		NMGK: Oil&Fat products		Agriculture products
				products Sales		Sales		Sales

-0.07*

1.11

Net Debt / Adj.

EBITDA (LTM)

+200%

6.3

RUB bn

CAPEX

• Net Debt and Net Debt / Adj. EBITDA (LTM) are compared to 31 December 2023.
• Consolidated since 3Q 2023.

NET REVENUE, ADJUSTED EBITDA: 1Q 2024 vs 1Q 2023

Net Revenue increased by RUB 20,913 million (+44%):

• Revenue of Sugar segment increased by RUB 3,018 million (+32%) both due to higher sales volume of sugar and the increase in selling price following market prices;
• Revenue of Meat segment decreased by RUB 119 million (-1%) due to the higher sales prices for both cut products and livestock compensated by decrease in sales volumes;
• Agriculture sales decreased by RUB 1,590 million (-27%) due decrease of sales volumes of all crops except wheat because of the differences in carryover balances at the beginning of reporting quarters;
• Oil & Fats sales increased by RUB 6,499 million (+28%) both due to the increase in sales volumes of bulk oil and meal following the start of production in Balakovo oil extraction plant (after its modernization) and the increase in sales of industrial fats and mayonnaise;

7

Net revenue (IFRS) 1Q 2024vs 1Q 2023

RUB million

									+44%
									(RUB + 20,913 million)
									14,520				68,309
																		(1,415)
									6,499
			3,018
	47,395
				(119)
				(1,590)

Revenue Sugar	Meat Agriculture Oil & Fats NMGK Eliminations	Revenue
1Q 2023	& other	1Q 2024

• Consolidation of NMGK contributed RUB 14,520 million to net revenue.

Adjusted EBITDA margin decreased from 15% in 1Q 2023 to 11% in 1Q 2024.

Adjusted EBITDA increased by RUB 163 million or 2%. Consolidation of NMGK contributed RUB 2,694 million to Adjusted EBITDA.

Adjusted EBITDA 1Q 2024 vs 1Q 2023

RUB million

15%
						11%
			+2%
			(RUB +163 million)
7,139		706			1,617	7,303
			2,694
	(1,226)		(1,675)
			(1,952)
Adj.	Sugar	Meat	Agriculture Oil & Fats	NMGK	Eliminations	Adj.
EBITDA					& other	EBITDA
1Q 2023						1Q 2024

Adj. EBITDA margin, %

SECTION 2

BUSINESS OVERVIEW BY DIVISION (IFRS)

1Q 2024 VS 1Q 2023

SUGAR

KEY INDICATORS 1Q 2024 VS 1Q 2023 (IFRS)	9

Adj. EBITDA 1Q 2023

Sales - Price factor

Sales - Volume factor

Cost of sales*

SG&A*

Other operating income/(expenses), net**

Adj. EBITDA 1Q 2024

2,010

Sales (RUB +3,018 million, +32%):

• Growth of sales prices following the increase of market prices;

	895	•	Increase in sales volume following the increase in sugar beet processing volume in
		2,123	2023/2024 season compared to 2023/2022 season.
		Adjusted EBITDA (RUB -1,226 million, -61%, margin -15 pp):
(4,082)		•	Growth of sugar beet purchase prices within cost of sales exceeded the effect of the
			increase in sugar sales prices and volumes;

(119)	• Increased equipment maintenance and staff costs.
(44)

784

Adj. EBITDA and

Sales,

Production and sales volumes,

Adj. EBITDA margin

RUB million

ths tonnes

21%

+3,018

(+32%)

+39

12,429

(+26%)

6%

9,411

+60

(+88%)

-1,226

187

148

(-61%)

129

2,010

784

69

1Q 2023

1Q 2024

1Q 2023

1Q 2024

1Q 2023

1Q 2024

Adj. EBITDA, RUB million

Adj. EBITDA margin,%

Production volume

Sales volume

1. Cost of sales, Distribution and selling expenses, General and administrative expenses are presented excluding depreciation and amortization. (**) Other operating income/(expenses), net are presented excluding other adjustments to EBITDA (non-recurring items).

MEAT

KEY INDICATORS 1Q 2024 VS 1Q 2023 (IFRS)	10

12,000

10,000

8,000

6,000

4,000

2,000

0

Adj. EBITDA 1Q 2023			447
Sales - Price factor
Sales - Volume factor	(1,741)
Cost of sales*
		1,021
SG&A*	(104)
Other operating	(91)
income/(expenses), net**
Adj. EBITDA 1Q 2024
		1,153
				Sales,
Adj. EBITDA and
Adj. EBITDA margin				RUB million

10,725

+706

(+158%) 11%

4%
447	1,153

1,622

-119

(-1%)

Sales (RUB -119 million, -1%):

• Increase in average sales prices for meat products and livestock;
• Decrease in production volume following pigs' diseases in FY 2023.

Adjusted EBITDA (RUB +706 million, +158%, margin +7 pp):

• Growth in average sales prices;
• Growth in sales prices was partially compensated by decrease of sales volumes.

Production and sales volumes, ths tonnes

10,607				-14
				(-19%)
			-15
			(-17%)
89			73
72	58

1Q 2023		1Q 2024	1Q 2023	1Q 2024		1Q 2023	1Q 2024
Adj. EBITDA, RUB million		Adj. EBITDA margin,%				Livestock pigs production volume

Sales volume

1. Cost of sales, Distribution and selling expenses, General and administrative expenses are presented excluding depreciation and amortization. (**) Other operating income/(expenses), net are presented excluding other adjustments to EBITDA (non-recurring items).